Rent Control Bill Passes

On the Governor’s desk as I write this column is a bill passed by the Washington legislature (HB 1217) that will limit rent increases to 7% plus inflation, or 10%, whichever is lower. For manufactured homes, the limit on rent increases is 5%.

The rent limits will expire in 15 years, except the manufactured home limit, which is permanent.

Exceptions to the limits are landlords that are nonprofit or public, plexes where the owner lives in one of the units, and new construction for the first 12 years after construction.

As a title company, we deal both with renters who want to buy, and investor/owners who want to be landlords or sell their rental properties. Our reaction to the bill, accordingly, is mixed: we can sympathize with renters whose rent gets raised every 6 or 12 months, but regular readers of this column will know that our usual prescription for that uncertainty is to become an owner, with monthly payments fixed at the amount a loan is obtained. Taxes and insurance can go up, of course, but your monthly mortgage payments are the same in year 30 of your 30-year, fixed-rate loan as they were in year one.

Keep in mind that not all landlords are mega-companies with rent money being stacked up; many are Mom and Pop operations with rent going to pay their own mortgage, taxes, and insurance. Now, consider who pays when something breaks, the roof leaks, or the tenant stops paying.

Hopefully, these new rent limits will not throw cold water on what most people have identified as the fix needed for housing in Clark County: more supply, more houses, and more apartments. Increasing the supply makes the price of those units lower than they would be if no housing units are added. Limiting the profit a landlord can make, conversely, discourages landlords from creating more units.

If you are in the market to buy or sell rental investment properties, we’re here to assist you. We handle all kinds of real estate closings, from single-family homes to new subdivisions, raw land, retail spaces, and multi-family properties.

We take pride in our ability to accurately close commercial and investment properties. That’s how we’ve earned that trust of many of the best Realtors and lenders in Clark County and their clients. Everyone benefits from the care, knowledge and expertise we bring to your important transaction. Let us help you in your next real estate move!

From your friends at Clark County Title,
Scott